Top 10 Most Common Crypto Scams You Should Watch Out For

Top 10 Most Common Crypto Scams You Should Watch Out For

Just like the Top 10 Best Cryptocurrencies to Watch and Buy in 2023, the popularity of cryptocurrencies continues to rise. So, we can see a prevalence of crypto scams. Scammers are constantly devising modern and creative ways to exploit unsuspecting investors, and it’s crucial to be aware of the most common crypto scams that are prevalent in the industry. To prepare for those scams, the World’s #1 Source Of Research Based Content, The Daily Top 10 compiled a list of the Top 10 Most Common Crypto Scams to Watch Out For.

Top 10 Most Common Crypto Scams You Should Watch Out For
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Did you read our Top 10 Best Cryptocurrency News and Trends in 2022? You may be a seasoned crypto investor or just going to start. However, understanding these scams is essential to protect yourself and your investments. So you can make informed decisions and safeguard your hard-earned money in the ever-evolving world of cryptocurrencies.

In today’s article, we will explore the Top 10 Most Common Crypto Scams that You Should Watch out for. At the same time, don’t forget to spend a few minutes reading the Top 10 World’s Biggest and Most Controversial Scams in 2022.

What is the Most Common Crypto Scam You Should Watch Out For?

Crypto scams are driven by various factors including the most common reason the lure of financial gain. Scammers always prey on individuals who are attracted to the potential for high returns on investments while promising them quick profits or exclusive opportunities in the cryptocurrency market. In addition, the lack of comprehensive regulation in the cryptocurrency space allows scammers to operate with impunity. However, it’s important to take note that engaging in crypto scams is illegal and unethical and be wary of potential red flags to protect themselves from falling victim to such scams.

Top 10 Most Common Crypto Scams You Should Watch Out For
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However, this is the time to understand the Most Common Crypto Scams to Watch out for. But we will share the rest of the scams before we reach the Top one. You can also check out the Top 10 Best Ways to Make Money Online Without Investment.

TOP 10: Blackmail Scams

Blackmail Scams, Top 10 Most Common Crypto Scams You Should Watch Out For
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Along with the growing popularity of Online Dating, scammers have found a way to take advantage of the trust and vulnerability of people searching for genuine connections. They build relationships with them and gain access to intimate images and information. Then they use these to blackmail them into sharing details and passwords of their crypto accounts and wallets or requesting payment in cryptocurrency for their silence.

This particular scam technique is effective due to the willingness of newer generations to get intimate with people they have only met online. The fast-paced dating world we are now experiencing makes it possible for scammers to quickly build a situation to their advantage. Investopedia recommends that dating site users should be cautious about who they choose to share potentially incriminating information with to avoid being caught by these professionals.

TOP 9: Employment Offers and Fraudulent Employees

Employment Offers And Fraudulent Employees, Top 10 Most Common Crypto Scams You Should Watch Out For
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Due to the COVID-19 pandemic, remote working became the newest way for employers and employees to engage in recruitment and work. It is now possible for people to work for foreign companies and earn in foreign currency or cryptocurrency. According to Forbes, scammers used this to their advantage and offered fraudulent jobs that require payment in cryptocurrency for job-related training and once the payment is made the “employer” would be untraceable.

From the employee’s point of view, IT professionals would apply for positions in crypto companies. Then use their employee access to hack the servers and make fraudulent transactions. According to Sanction Scanner, the most famous instance of this was when a group of North Korean IT professionals targeted the US crypto market by posing as highly qualified US citizens seeking jobs in crypto companies.

TOP 8: Fake Crypto Exchanges

Fake Crypto Exchanges, Top 10 Most Common Crypto Scams You Should Watch Out For
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When it comes to any kind of monetary assets, like traditional currency or cryptocurrency, there’s no such thing as free. But the word free is very tempting and scammers use this to their greatest advantage. They entice potential investors with promises of free Bitcoins or lower-priced commodities and just sit back and wait while users feed their sensitive information into the fake platform and make their initial investment.

Forbes recommends that users stick to reputed exchanges and wallets to avoid being infiltrated by scammers. The fake wallets will run through your personal computers like malware stealing not just your crypto information but also any credit card or bank details that may be accessible to the virus from the computer memory.

TOP 7: Man-In-the-Middle (MITM) Attack

Man-In-The-Middle (Mitm) Attack, Top 10 Most Common Crypto Scams You Should Watch Out For
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According to Tech Target, Man-in-the-Middle (MITM) attacks involve intercepting communication between two parties to gain unauthorized access or steal sensitive information. So, scammers use this technique commonly to exploit vulnerabilities in the cryptocurrency space. A common MITM attack as a crypto scam might involve intercepting communication between a cryptocurrency user and an online wallet or an exchange.

The scammer may position themselves between the user and the legitimate cryptocurrency service while intercepting communication and gaining access to the user’s private keys or login credentials. So, the attacker can steal the user’s cryptocurrency funds or manipulate transactions to their advantage. So, cryptocurrency users need to take steps to protect themselves from MITM attacks.

TOP 6: Giveaway Scams

Giveaway Scams, Top 10 Most Common Crypto Scams You Should Watch Out For
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Giveaway scams are one of the most common types of crypto scams that target unsuspecting individuals. As we noticed in Akamai, these scams usually involve scammers posing as influential figures or well-known entities in the cryptocurrency community. And they promise to give away free cryptocurrency in exchange for a small initial deposit or personal information.

After the individuals send their initial deposit or share their personal information, the scammers are disappearing. So, the victims never receive the promised giveaway, resulting in financial loss and potential harm to their personal information. Be careful as the scammers may use various tactics to lure victims like social media posts, emails, or direct messages claiming to be from famous cryptocurrency personalities, exchanges, or companies.

TOP 5: Fake Apps

Fake Apps, Top 10 Most Common Crypto Scams You Should Watch Out For
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As mentioned in Kaspersky, crypto scammers often use fake apps as a common tactic to defraud unsuspecting individuals. These apps are designed creatively to mimic legitimate cryptocurrency apps, wallets, or exchanges. They create these apps intending to steal users’ sensitive information or funds.

There are several ways in which crypto scammers use fake apps for their scams like,

  • Impersonating legitimate apps
  • Malware-infected apps
  • Fake mining apps
  • Phishing apps

So, don’t be a victim and you should only download cryptocurrency apps from official app stores or reputable sources. In addition, don’t forget to verify the legitimacy of the app by checking the developer’s website or official social media accounts, and reading reviews and ratings from other users.

TOP 4: Investment Scams

Investment Scams, Top 10 Most Common Crypto Scams You Should Watch Out For
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Investment scams in cryptocurrency are unfortunately prevalent. Most scammers prey on unsuspecting individuals, especially those who are new to the crypto space or seeking to make quick profits. These scams commonly involve fraudulent schemes in that scammers promise high returns or guaranteed profits through cryptocurrency investments, but they are designed to defraud victims and steal their funds.

As advised by the Consumer, to protect from being a victim of an investment scam, it’s essential to exercise caution and do thorough research before investing. Just be careful to verify the legitimacy of investment opportunities and check the background of the individuals or entities promoting the investment. Additionally, users should never invest more than they can afford to lose and should be skeptical of promises of high returns or guarantees.

TOP 3: Phishing Scams

Phishing Scams, Top 10 Most Common Crypto Scams You Should Watch Out For
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According to the National Cyber Security Center, Phishing scams mean fraudulent attempts to steal sensitive information or personal data, by posing as a trustworthy entity. These scams typically occur through emails, text messages, or fake websites that mimic legitimate organizations, such as banks, online payment processors, or other businesses. So, Phishing scams are a common tactic used by crypto scammers to trick individuals.

Here’s how crypto scammers typically carry out phishing scams:

  • Fake websites
  • Phishing emails
  • Social media scams
  • Malware and keyloggers
  • Fake customer support

It’s very important to use security features like two-factor authentication (2FA) on cryptocurrency accounts and regularly update devices and software with the latest security patches.

TOP 2: Rug Pull Scams

Rug Pull Scams, Top 10 Most Common Crypto Scams You Should Watch Out For
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As mentioned in Hacken, Rug Pull scams are commonly involved deceitful practices by developers or teams associated with a particular cryptocurrency project. In this type of scam, the developers behind a cryptocurrency project abruptly abandons the project after gaining investors’ trust and collecting funds. What they usually do is liquidate or transfer the funds, leaving investors with worthless tokens or no access to their investments.

Most importantly, these scams can occur in various forms like initial coin offerings (ICOs), decentralized finance (DeFi) projects, or new token launches. The worst side of this is that it results in significant financial losses for investors and erodes trust in the crypto community.

TOP 1: Bitcoin Investment Schemes

Bitcoin Investment Schemes, Top 10 Most Common Crypto Scams You Should Watch Out For
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Bitcoin Investment Scheme is the  Most Common Crypto Scams You Should Watch Out for in our list. It is a type of crypto scam that targets individuals seeking to invest in Bitcoin, a popular form of digital currency. These schemes often promise high returns on investment with little or no risk, using deceptive tactics to lure in unsuspecting investors. According to Forbes Advisor, below are the common types of Bitcoin investment schemes:

  • Ponzi schemes
  • Fake investment platforms
  • Pump-and-dump schemes
  • Fake mining operations
  • Social media and email scams

By consulting with a qualified financial professional and using reputable investment platforms, you can mitigate the risk of falling victim to Bitcoin investment scams.

What are the Most Common Crypto Scams You Should Watch Out for?

As we mentioned earlier,  it’s important to be aware of the most common crypto scams that exist and take necessary precautions to protect oneself. Scammers often get the advantage of individuals’ lack of knowledge, greed, or emotions and then use various tactics to steal funds or sensitive information. So, remember, if something seems too good to be true, it likely is, and always prioritize security and due diligence in the ever-evolving landscape of cryptocurrencies.

Top 10 Most Common Crypto Scams You Should Watch Out For
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Here is the list of the Top 10 Most Common Crypto Scams You Should Watch Out for:

  1. Bitcoin Investment Schemes
  2. Rug Pull Scams
  3. Phishing Scams
  4. Investment Scams
  5. Fake Apps
  6. Giveaway Scams
  7. Man-in-the-Middle (MITM) Attack
  8. Fake Crypto Exchanges
  9. Employment Offers and Fraudulent Employees
  10. Blackmail Scams

Remember, knowledge is power, and staying informed is one of the best ways to safeguard against falling prey to crypto scams. By staying up-to-date with the latest information, news, and trends in the cryptocurrency industry, individuals can better understand the risks and red flags associated with potential scams. So, check out our Business-Crypto-Finance  Category for our latest articles like Top 10 Asia’s Best Business and Finance News and Trends in 2023, Top 10 World’s Biggest Companies Using Blockchain Platforms, and Top 10 World’s Best Business Leaders Who Made an Impact in 2023. With all that, do you want us to be your partner? If yes, send us an email or hit the contact form and send us your message!

Fahad M.
Author: Fahad M.

Fahad M. is approachable and energetic about resolving SEO and content-related issues. He is customer-focused and always has the big picture in mind. He is also extremely creative and eager to assist wherever and whenever possible.

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